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Tax Related News by Eggett Tax Services

Tax Myths


  • Registered Educational Savings Plans are not a tax planning tool.
  • They can increase tax payments upon withdrawal for both the child and the contributor. The investment aspect can also be in question.


  • Tax Free Savings Accounts can save you a very small amount of taxes now but cost you much more in tax savings in other areas.


  • It is important that you are incorporating is for the right reason.
  • Incorporating may prove to be an expensive situation to get into and out of later with little or no tax savings.


  • Rental income is a long term investment which may lead to greater tax savings later. It is not a vehicle to produce expenses to create an immediate tax advantage now.


  • The purpose of self employment is to create income. Self employment to create a loss may lead to difficulties in the future.


  • The information provided by the Canada Revenue Agency for the majority of questions may be correct. A recent survey shows that 25% of the answers on the telephone are incorrect.
  • The basic problem is they do not either understand the question nor know the whole story.


  • Tax software is only a tool for tax preparation not unlike a hammer in building a house. Proper tax preparation requires a plan to save tax dollars. A tax plan requires an architect to build a firm foundation.
  • Tax preparation software provides no accountability or recourse other than the Canadian Revenue Agency